A recent report from Equifax Canada reveals a concerning trend in the Canadian housing market, as mortgage debt has surged, approaching a staggering $2 trillion by 2025. The report highlights that the nation is currently experiencing a mortgage renewal wave, with significant numbers of households renewing their mortgages. By the end of 2025, it is estimated that approximately 1.5 million households will have completed their renewals, with an additional one million expected to follow in 2026. This burst of activity underscores the ongoing changes in the mortgage landscape for Canadian homeowners.

Despite an increase in mortgage renewals, which reached a total of $1.95 trillion in the fourth quarter and represented a 2.6% rise from the previous year, affordability issues persist, especially in high-demand housing markets. Rebecca Oakes, vice-president of advanced analytics at Equifax Canada, noted that stabilization in interest rates has had a positive impact on homeowners and the overall mortgage industry. However, this has not alleviated the challenges faced by potential new homeowners, especially those seeking starter homes, which are growing increasingly out of reach due to high mortgage balances.

The implications of these findings are significant, as rising debt levels can limit consumer spending and overall economic growth. The struggle for affordability in the housing market signals potential long-term issues for first-time buyers who are finding it harder to enter the market as average new loan amounts continue to rise. This trend points to a broader challenge within the Canadian economy, particularly as the balance between interest rates, housing supply, and demand continues to evolve, leaving many Canadians navigating an increasingly complex housing landscape.